Personal property taxes are levied against all tangible personal property used in a trade or business, used for the production of income, or held as an investment that should be or is subject to depreciation for federal income tax purposes including but not limited to mobile homes (not on permanent foundations), billboards, and materials for use in production. Inventory is no longer taxed.
Personal property values are assessed January 1 of every year and are self reported by property owners to the County Assessor using prescribed state forms. The completed personal property return must be filed with the local County Assessor no later than May 15. Taxes on the reported values are due in two installments in May and November of the following year.
NEW IN 2016
Beginning in 2016, IC 6-1.1-3-7.2 provides an exemption for a taxpayer’s personal property in a county if the acquisition cost of that taxpayer’s total personal property in the county is less than $20,000 for the assessment date.
For purposes of this exemption, “acquisition cost” means the cost of the business personal property:
(1) acquired in an arms-length transaction from an entity that is not an affiliate of the taxpayer, if the personal property has been previously used in Indiana before being placed in service in the county; or
(2) acquired in any manner, if the personal property has never been previously used in Indiana before being placed in service in the county. IC 6-1.1-3-7.2(c)(3).
A taxpayer that is eligible for the exemption is not required to file a personal property return for the taxpayer’s business personal property in the county for that assessment date. However, the taxpayer must, before May 15 of the calendar year in which the assessment date occurs, file annually with the county assessor stating that the taxpayer’s business personal property in the county is exempt from taxation for that assessment date.
A taxpayer believing he qualifies for this exemption is encouraged to review IC 6-1.1-3-7.2 in consultation with his legal counsel and/or financial advisor before signing this certification. Only one annual certification is required for each county where the taxpayer is eligible. If a person fails to timely file the annual certification, the county auditor must impose a penalty of $25 that must be paid by the person with the next property tax installment that is collected.
Below are some of the most common Personal Property Forms if the one you need is not listed you can access all of the forms at www.in.gov/dlgf.
Form 104 (Must accompany 102 & 103 Forms)
Form 103 Short
Form 103 Long
If you have further questions you can click here for Frequently Asked Questions.